Compensation Rules for Charities

Compensation Rules for Charities: "Compensation Rules for Charities

September 2010

Did you know that nearly 52�percent—170,568, to be exact (according to the July�29, 2010, IRS master file of exempt organizations)—of charities that file Form�990 and 990-EZ have fiscal years that end in December? Which means it’s budget time for these organizations.

And did you know that nearly 31�percent—101,248, to be exact—of these charities have incomes of $100,000 or more? They are the organizations most likely to have paid staff. And setting compensation is an important part of the budget process. Which means it's a good time to review the rules related to compensation for executives who lead tax-exempt organizations."